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starting new business

Discussion in 'Business Fundamentals' started by Geary44, Aug 13, 2009.

  1. Geary44

    Geary44 Senior Member
    Messages: 183

    Does anyone know how it would work insurance wise if I use my truck for personal half of the year and use it in my plowing business for the other half? Do I have to get insurance for my business and my truck for the full year, or can I get it for certain months?
     
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Full year as commercial vehicle at the rate for "snow plowing". Unless you have another business. Then the rate would be split with that business-rate.
     
  3. kolkie05

    kolkie05 Senior Member
    from Chicago
    Messages: 114

    You can keep your policy as personal just make sure you tell your agent about your plow so they can add it to your policy. That's covering the truck tho you still need commercial liability insurance to cover any damage you do and liability.
     
  4. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    This has been argued, ad infinitum. Some states and some insurance companies MIGHT put a rider on a Personal Use policy to cover snowplowing for Commercial Use vehicles. I advise caution, but do what you want to do. THINK -- there's a reason for Commercial and Personal Use (vehicle registration/insurance). THINK - are insurance companies really doing what they can to keep your costs down (at their expense)?
     
    Last edited: Aug 14, 2009
  5. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    If you are "starting a new business" like your title says, then your truck is used for business year round. I get that you probably have a "real job" and only use the truck for plowing.

    Get business liabilty insurance AND put your truck under the business policy. If you shop around it is going to be competitive in price.

    Besides, there is a tax break for business insurance and not for personal insurance.
     
  6. kolkie05

    kolkie05 Senior Member
    from Chicago
    Messages: 114

    I can tell you guy's for a fact that State Farm will allow you to keep your truck as personal if it's not used for "business" technicallly if your just plowing during winter it's still personal. Another point I should make is the vehicle type if you just have a regular pickup your fine with a personal policy. If you have a commercial type truck then it's a different story.

    Remember the auto policy is just extending liabilty in the event of a accident. The business liabilty policy covers damage to property and injury. That is the difference between the two.
     
  7. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I hope it never happens. But if you hit someone with your "personal" truck plowing snow for money, you will probably not be covered. Check with State Farm on that.

    What is a "commercial type truck"? My dodge 1500 has company logo, front and rear plows, & yellow warning light. Is that a "commercial type truck" What would happen if I took off the warning light, logo, & plow. Is it still a "commercial type truck"?

    In many states, you have to have a business name & phone number on the truck if you want to plow with it. In many states if you drive your Ford Escort to a business meeting as a self employeed business man, that is a commercial vehicle.
     
  8. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    You are correct that "State Farm will allow you to keep your truck as personal if it's not used for "business" technicallly ...". But when you file a claim for damage while plowing (other than your own property), the vehicle (magically and "technically") becomes a commercial (used to make money) vehicle and not covered by your Personal Use policy.

    I have been involved with these discussions on this site and others for the past eight years.

    ANYTHING the agent says HAS to be in writing by the Underwriter to be in effect. The agent will not determine the legitimacy of the claim nor make the payment - the Underwriter does.

    But - do what you want to do.
     
  9. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    When else would you be plowing (snow)?